• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
Email | jay@coastallains.com    Call Us Call Us Now | (225) 389-6024 
Home
  • Main Menu
    • Home Page
    • Secure File Area
    • Refer a Friend
    • Join Our Newsletter
    • Insurance Glossary
    • News Center
    • Contact Us
    • Privacy Policy
  • Languages
    • English
    • Español
    • Language
  • Automobile
    • Automobile Insurance Home
    • Auto Insurance Quote
  • Homeowners
    • Homeowners Insurance Home
    • Homeowners Insurance Quote
  • Renters
    • Renters Insurance Home
    • Renters Insurance Quote
  • Business & Commercial
    • Business & Commercial Insurance Home
    • Commercial Auto Insurance Quote
    • Workers Compensation Quote
  • Health
    • Health Insurance Home
    • Health Insurance Quote
    • Disability Insurance Quote
    • Long Term Care Insurance Quote
  • Life
    • Life Insurance Home
    • Life Insurance Quote
  • Flood
    • Flood Insurance Home
    • Flood Quote Form
  • Watercraft & Boat
    • Watercraft & Boat Insurance Home
    • Watercraft Insurance Quote
  • Blog

Home > Blog > Brokers vs. Agents
FRIDAY, JULY 12, 2019

Brokers vs. Agents

Insurance is a subject that not many people enjoy talking about. Even fewer choose to spend their days understanding the nuance of who sells it to them, and what their responsibilities to clients may be. Consumers put their protection needs in jeopardy, however, if they fail to understand the difference between an insurance broker and an insurance agent.

While the titles can be confusing, the main takeaway is that brokers represent their clients, and agents must represent their companies. Both have a duty to help you acquire coverage that is appropriate and fairly priced, but brokers and some agents have the ability to write coverage through multiple carriers. Other agents, called captive agents, only have the ability provide coverage through one insurance company. In this circumstance, as long as the coverage is deemed “appropriate” by the agent, his duty rests primarily with representing that company’s interest. 

The case law on the subject is clear on one thing, however: a broker has a fiduciary duty to act in the clients’ best interest. In other words, he pledges allegiance to his clients’ needs over the insurance companies’ desire to make the highest profit.

Please don’t think that I am bashing captive agents or the companies they represent.  Every company needs to make a profit, and insurance professionals need to make a living. Some agents representing singular companies do a fantastic job of protecting their clients with quality products from their companies. I have several friends within the industry and in personal life who are captive insurance agents, and they are full of honesty and integrity. My own father worked as a captive agent for over 30 years. But as dad often said, “If the only tool you have is a hammer, everything begins to look like a nail!”

Whether you decide to go with a broker, an independent agent, or a captive agent when obtaining coverage, do your own due diligence and be sure that they individual you choose to do business with is looking after  your best interests.

Image may contain: one or more people, people sitting and text

Posted 1:28 AM

Tags: home insurance, auto insurance, baton rouge insurance, baton rouge home insurance, life insurance, baton rouge insurance, insurance agents, insurance brokers
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019

  • auto insurance(6)
  • insurance(6)
  • home insurance(6)
  • property insurance(5)
  • life insurance(5)
  • baton rouge insurance(3)
  • victory(2)
  • life(2)
  • insurance legislation(2)
  • life advice(2)
  • election(2)
  • baton rouge home insurance(2)
  • lsu(2)
  • health insurance(2)
  • low costs(2)
  • hurricane(2)
  • game day(2)
  • named storm deductible(2)
  • insurance regulation(2)
  • car insurance(2)
  • baton rouge auto insurance(1)
  • disaster(1)
  • property claim(1)
  • homeowners insurance quote(1)
  • flood insurance(1)
  • acquisition(1)
  • coastal alabama insurance(1)
  • homeowners insurance made easy(1)
  • coastal insurance(1)
  • merger(1)
  • insurance adjuster(1)
  • orchid underwriters(1)
  • homeowner's insurance(1)
  • coastal louisiana insurance(1)
  • handling an insurance claim after a storm(1)
  • insurance claim(1)
  • insurance agents(1)
  • insurance brokers(1)
  • insurance claims(1)
  • coverage(1)
  • bankruptcy(1)
  • homeowners insurance(1)
  • what to know about getting homeowners insurance(1)
  • insurance deductible(1)
  • how to get homeowners insurance(1)
  • things to know before getting a quote(1)
  • insurance rates(1)

View Mobile Version
Facebook
Twitter
Google+
LinkedIn
Carriers
 
Carriers
Carriers
  
Carriers
Facebook Logo

Resources

Home About Us Get a Quote Customer Service Contact Us

Contact Us

 1669 Lobdell Ave. Suite D

  • Baton Rouge, LA 70806
  • P: 225-389-6024
  • E: chris@coastallains.com
  •  
© Copyright. All rights reserved.
Powered by Insurance Website Builder